When 2,000 hamburgers per day are produced, the marginal social benefit is $1.50 and the marginal social cost is $1.00. And when 7,500 hamburgers per day are produced, the marginal social benefit is $1.00 and the marginal social cost is $1.50
The efficient production quantity of hamburgers is ________ a day. A) more than 7,500
B) 7,500
C) between 2,000 and 7,500
D) 2,000
C
You might also like to view...
The intertemporal tradeoff between present and future consumption is measured by the
A) real interest rate. B) inflation rate. C) nominal interest rate. D) terms of trade. E) rate of economic growth.
The high point in the business cycle is referred to as the
A) turning point. B) peak. C) boom. D) trough.
Which of the following will LEAST likely generate positive external effects to society?
A) education B) fast food services C) health care D) requiring drivers to undergo periodic eye examinations
If you and I agree to exchange four ginger snaps for one chocolate chip cookie, then it must be true that
a. we are both at least as well off as we were before b. I am better off than I was before, but you are not c. you are better off than you were before, but I am not d. we are both better off than before e. we are both worse off than before